The way we talk about real estate has changed dramatically in the last few years as the collective sentiment has shifted from euphoria to panic. No one would dare to say "the only way is up" or "the easy money is in flipping" anymore. Here are a few other phrases that once seemed just as true.
In Pictures: 6 Tips On Selling Your Home In A Down Market
* "Location doesn't matter."
Housing was appreciating so rapidly in seemingly every market that some people thought that no matter where you bought, you'd soon make a fortune.
It's hard now to believe that anyone was promoting such a myth. After all, even people who claim to know nothing about real estate can rattle off the famous adage, "location, location, location." More than anything else, where a home is located determines its long-term value. A state-of-the-art kitchen can quickly become outdated, but a nice part of town can remain that way for generations.
Even some places that seemed like great locations turned out to be terrible bets. Stephen Smith reported in an American RadioWorks documentary that Las Vegas went from having job growth four times the national average and attracting 4,000 to 5,000 new residents a month to being dubbed "Foreclosure City." (For more on why location matters, check out The 5 Factors Of A "Good" Location.)
* "You don't need a down payment."
Traditionally, the purpose of a down payment is to reduce the bank's lending risk. It shows that the borrower has enough self-discipline to save up 20% of the purchase price of a home.
More importantly, it means that the borrower is likely to keep making his mortgage payments even when times are tough because he has already put a lot of his own money into the house.
When banks started giving people mortgages that didn't require a down payment, buying a home started to feel more like leasing an apartment. Even owners with fixed-rate mortgages had little home equity since most of the mortgage payment for the first few years is interest.
When housing prices dropped, owners started sending jingle mail to their lenders. So what if they could still afford the monthly payments? It didn't make logical sense to keep paying for a depreciating asset that they owned so little of, borrowers reasoned. The sting of a credit score ruined by foreclosure wouldn't last as long as the burn of paying $500,000 for a $300,000 home.
The lack of down payment is also one reason why so many homeowners ended up underwater. If you purchase a home for $200,000 with no down payment and the market value of your house drops to $160,000, you can't sell the house because you can't pay off the mortgage (unless you have $40,000 sitting in the bank). If you purchase a home for $200,000 with a 20% down payment and the market value drops to $160,000, you still have the option to sell at a loss. Most people who didn't make down payments didn't have money in the bank, though, and when they needed to get out of their homes, they were forced into credit-damaging short sales and foreclosures instead of having the option to sell. (Learn more in Short Sales And Foreclosures: When It's Time To Move On.)
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Wednesday, July 28, 2010
Thursday, July 15, 2010
Know how to do debt consolidation mortgage refinance if I have real bad credit?
Yes, you can. You can do a debt consolidation mortgage refinance loan taking a second mortgage or a home equity loan that are capable of reducing your payments as well as help you pay off some of your debts in full.
Second mortgages and home equity lines of credit are often used for debt consolidation mortgage refinance. With these loans you are using your equity to pay for extra debt. It is not necessary to have a good credit score to go for a debt consolidation mortgage refinance. You wouldn’t be in a position for debt consolidation if you had good credit in the first place.
Even if your credit is real bad, and you are offered very high rates on a second mortgage, try working with a professional debt consolidation company. They may be in a position to negotiate debt reduction with your creditors and choose the best debt consolidation mortgage refinance program for your remaining debt. All that, of course, they will do for a significant fee. However, if you are in a real need to get in control of your finances, some professional help will make the difference. Just avoid getting scammed when choosing a debt consolidation company.
Source
Second mortgages and home equity lines of credit are often used for debt consolidation mortgage refinance. With these loans you are using your equity to pay for extra debt. It is not necessary to have a good credit score to go for a debt consolidation mortgage refinance. You wouldn’t be in a position for debt consolidation if you had good credit in the first place.
Even if your credit is real bad, and you are offered very high rates on a second mortgage, try working with a professional debt consolidation company. They may be in a position to negotiate debt reduction with your creditors and choose the best debt consolidation mortgage refinance program for your remaining debt. All that, of course, they will do for a significant fee. However, if you are in a real need to get in control of your finances, some professional help will make the difference. Just avoid getting scammed when choosing a debt consolidation company.
Source
Monday, June 28, 2010
Home Equity As A Debt Consolidation Option On The Rise
Instant Bad Debt Consolidation announces an increase in the number of individuals using their home equity to secure debt consolidation loans. Debt consolidation loans are a method of taking one's high interest credit card debt and putting all of the different credit card bills together into one single lower interest rate loan.
Debt consolidation loans can be secured or unsecured, with advantages for those who offer up some collateral to secure the loan. These loans can help individuals to reduce their debt and regain control of their financial futures as long as they do not secure the loan to pay off their credit cards, then charge with them again until they are maxed out again.
Individuals using their home equity as collateral to secure these loans are generally seen as being more serious about getting out of debt and receive benefits from lenders such as lower interest rates and more favorable payment terms.
In summary, debt consolidation loans offer a way to help individuals reduce their debt and their monthly payments by combining high interest credit card debts into a single loan. More people are using their home equity to secure these loans in exchange for more favorable rates and payment terms.
Source
Debt consolidation loans can be secured or unsecured, with advantages for those who offer up some collateral to secure the loan. These loans can help individuals to reduce their debt and regain control of their financial futures as long as they do not secure the loan to pay off their credit cards, then charge with them again until they are maxed out again.
Individuals using their home equity as collateral to secure these loans are generally seen as being more serious about getting out of debt and receive benefits from lenders such as lower interest rates and more favorable payment terms.
In summary, debt consolidation loans offer a way to help individuals reduce their debt and their monthly payments by combining high interest credit card debts into a single loan. More people are using their home equity to secure these loans in exchange for more favorable rates and payment terms.
Source
Saturday, May 15, 2010
Getting mobile home loans with bad credit
For those people put there with bad credit standing who wish to purchase or refinance a mobile home (assuming it’s to be installed permanently and at the owner’s lot), there is available financing. This type of financing is unique so look for a lender that has experience with bad credit loans so that you get good advice and an idea of what to look for.
These type of bad credit loans are commonly referred to as subprime mortgages and this is one reason why the housing market is in the mess it is. While many lenders will only work with individuals with a good credit rating, there are some institutions that will lend to people who are not as fortunate or have made bad financial decisions in the past.
What is considered a poor credit rating?
As far as the mortgage market goes an individual with a credit rating less than 620 will be considered having poor credit, and this will make securing financing for a mobile home much more difficult. However, the lenders that do lend to borrowers with less than perfect credit will make sure they limit their risks by charging a very high interest rate.
As with all bad credit loans, you will have to expect that the interest rates will be much higher than that of a traditional mortgage and will be offered with either fixed rate mortgages or adjustable rate mortgages (ARM). Many professionals advise to first pull a copy of your credit report from one of the three main credit bureaus before applying for a loan. You are acquired to one free credit check a year.
Source
These type of bad credit loans are commonly referred to as subprime mortgages and this is one reason why the housing market is in the mess it is. While many lenders will only work with individuals with a good credit rating, there are some institutions that will lend to people who are not as fortunate or have made bad financial decisions in the past.
What is considered a poor credit rating?
As far as the mortgage market goes an individual with a credit rating less than 620 will be considered having poor credit, and this will make securing financing for a mobile home much more difficult. However, the lenders that do lend to borrowers with less than perfect credit will make sure they limit their risks by charging a very high interest rate.
As with all bad credit loans, you will have to expect that the interest rates will be much higher than that of a traditional mortgage and will be offered with either fixed rate mortgages or adjustable rate mortgages (ARM). Many professionals advise to first pull a copy of your credit report from one of the three main credit bureaus before applying for a loan. You are acquired to one free credit check a year.
Source
Monday, March 15, 2010
BAD CREDIT HOME LOANS – GETTING LOW MORTGAGE INTEREST RATES IN ARKANSAS
Bad credit home loans are causing many homeowners a great amount of stress in the United States. It is quite interesting that the state that searches bad credit home loans the most is Arkansas. Arkansas searching this keyword phrase the most likely means that many homeowners in Arkansas will look to get a lower interest-rate on their mortgage.
If you currently have bad credit you are going to find it difficult to get the low advertised mortgage interest rates you are seeing on television and the Internet. You have probably noticed that there are many advertisements for mortgage rates around 5%. If you have a credit score below 650 and little equity in your home you are going to find it very difficult to get mortgage rates this low.
This does not mean that you will not benefit from refinancing today. If you can save one full percentage point on your mortgage refinance then it would be worth it for you to go through this process. If you signed your first mortgage when conventional mortgage rates were about 6% there’s a good opportunity that you will save by refinancing today.
Conventional mortgage rates are currently at 5% which means that you are likely to lock into a lower interest rate then you initially did. The only way you will know what mortgage interest rate you qualify for is to go through the refinance application process. After you complete this process you will better know what amount of savings you will see by refinancing.
If you decide that refinancing is right for you it is important to note that you’ll have to pay closing costs. These closing costs can often outweigh the benefits of refinancing so be sure to calculate that into your savings. This is the reason that you will want to save at least one full percentage point.
Source
If you currently have bad credit you are going to find it difficult to get the low advertised mortgage interest rates you are seeing on television and the Internet. You have probably noticed that there are many advertisements for mortgage rates around 5%. If you have a credit score below 650 and little equity in your home you are going to find it very difficult to get mortgage rates this low.
This does not mean that you will not benefit from refinancing today. If you can save one full percentage point on your mortgage refinance then it would be worth it for you to go through this process. If you signed your first mortgage when conventional mortgage rates were about 6% there’s a good opportunity that you will save by refinancing today.
Conventional mortgage rates are currently at 5% which means that you are likely to lock into a lower interest rate then you initially did. The only way you will know what mortgage interest rate you qualify for is to go through the refinance application process. After you complete this process you will better know what amount of savings you will see by refinancing.
If you decide that refinancing is right for you it is important to note that you’ll have to pay closing costs. These closing costs can often outweigh the benefits of refinancing so be sure to calculate that into your savings. This is the reason that you will want to save at least one full percentage point.
Source
Sunday, February 28, 2010
BAD CREDIT LENDERS – GETTING HELP WITH THE MORTGAGE REFINANCE PROCESS
There are many bad credit lenders that will be more than happy to help you with the mortgage refinance process. If you currently have little equity in your home and you have a credit score that is below 650 then you are going to find it extremely difficult to lock in to a low refinance rate. This does not mean that you will not benefit from the mortgage refinance process.
If you can save one full percentage point on your overall home loan rate then you will greatly benefit from the mortgage refinance process. The reason that you will need to save one full percentage point is because there are closing costs involved in refinancing. If you cannot save that full percentage point the closing costs are likely to outweigh the benefits of saving a fraction of a percentage point.
As stated earlier, there are many bad credit lenders that can help you get a bad credit mortgage refinance. These lenders are experienced working with individuals with bad credit and little equity in your home. You cannot expect these companies to be miracle workers and get you an interest rate under 5% but what you can expect is that they will make the process much easier for you.
Any major financial decision is very important so you will need to step back and look at the overall picture. If you have been having extremely difficulty going through the mortgage refinance process then you will want to seek a bad credit lender that can assist you in your needs.
Source
If you can save one full percentage point on your overall home loan rate then you will greatly benefit from the mortgage refinance process. The reason that you will need to save one full percentage point is because there are closing costs involved in refinancing. If you cannot save that full percentage point the closing costs are likely to outweigh the benefits of saving a fraction of a percentage point.
As stated earlier, there are many bad credit lenders that can help you get a bad credit mortgage refinance. These lenders are experienced working with individuals with bad credit and little equity in your home. You cannot expect these companies to be miracle workers and get you an interest rate under 5% but what you can expect is that they will make the process much easier for you.
Any major financial decision is very important so you will need to step back and look at the overall picture. If you have been having extremely difficulty going through the mortgage refinance process then you will want to seek a bad credit lender that can assist you in your needs.
Source
Monday, February 15, 2010
Is There Such a Thing as Good Credit Card Debt?
Few things in life are ever completely black and white. Even when it comes to debt, there is good debt and bad debt. Good debt is debt which people take on to achieve some of their long-term goals. Taking out a mortgage to purchase a home, for example, is good debt, because it saves you money and over time could even turn into a small nest egg, particularly if home prices rise in the area where you live. Good debt, in short, is debt that you deliberately take on because of the long-term advantages it creates for you.
When it comes to credit card debt, however, is there such a thing as good credit card debt? There are many good reasons to simply say that credit card debt is something to avoid at all cost. However, at the same we’re all tempted by some of those great 0% APR credit card offers from time to time. So, is credit card debt always bad? Or are there ways to use credit card debt to your advantage?
Yes, certainly, under certain circumstances it does make sense to take on credit card debt. Here is CreditCardGuide.com’s list of the two different types of credit card debt, good and bad.
Bad Credit Card Debt
Debt you take on to make ends meet. Many people struggling to make ends meet use credit cards as a short-term solution to fill in the gap. If you find yourself having to use credit cards to purchase groceries or pay for your utilities, you’re taking on bad credit card debt. While credit cards may help temporarily, in the long term, the accumulating credit card debt is likely to land you in greater trouble than if you’d turned to other solutions early on.
Debt from purchases you didn’t really plan to make. With credit cards, it’s much easier to get tempted and make purchases you didn’t plan for. If your monthly statement brings many such unwelcome reminders and you don’t have enough money to pay off those little indulgences, you’re taking on bad credit card debt.
Debt you can’t pay off within two to three months. The terms of credit card debt can easily change, and this makes credit card debt very risky. If your terms change for the worse, it could upset your whole financial apple cart. For this reason, any kind of credit card debt that you wouldn’t be able to pay off within a couple of months, if you wanted to, is bad credit card debt.
Good Credit Card Debt
Credit card debt that helps you save money. If you are a savvy consumer and have good credit, it is entirely possible to save money by using credit cards—if you play your cards right. If you’re planning, for example, a home improvement project, making a short-term loan using a low interest or 0% APR purchase or balance transfer offer can be a great way to go.
Credit card debt used to finance large, pre-planned purchases. Credit card debt can be good, when it’s used to finance large purchases that you’d make anyway, and you just use your card to make the purchase earlier (and even get some great rewards too).
In both cases, however, there is one important caveat: You must have a plan in place to pay the debt off within a few months in case your credit card terms turn against you. Yes, your good credit card debt can quickly turn bad. If your terms change for the worse and your payments go up or even double, your whole financial ship could get put at risk.
For this reason, no credit card debt is worth taking on unless you have either back-up savings in place, or have access to other types of credit (and no, that’s not just another credit card). If you don’t have savings, an acceptable back-up could be a home equity line of credit, so you can turn around and pay off the credit card debt without getting stuck with impossibly high interest charges.
Source
When it comes to credit card debt, however, is there such a thing as good credit card debt? There are many good reasons to simply say that credit card debt is something to avoid at all cost. However, at the same we’re all tempted by some of those great 0% APR credit card offers from time to time. So, is credit card debt always bad? Or are there ways to use credit card debt to your advantage?
Yes, certainly, under certain circumstances it does make sense to take on credit card debt. Here is CreditCardGuide.com’s list of the two different types of credit card debt, good and bad.
Bad Credit Card Debt
Debt you take on to make ends meet. Many people struggling to make ends meet use credit cards as a short-term solution to fill in the gap. If you find yourself having to use credit cards to purchase groceries or pay for your utilities, you’re taking on bad credit card debt. While credit cards may help temporarily, in the long term, the accumulating credit card debt is likely to land you in greater trouble than if you’d turned to other solutions early on.
Debt from purchases you didn’t really plan to make. With credit cards, it’s much easier to get tempted and make purchases you didn’t plan for. If your monthly statement brings many such unwelcome reminders and you don’t have enough money to pay off those little indulgences, you’re taking on bad credit card debt.
Debt you can’t pay off within two to three months. The terms of credit card debt can easily change, and this makes credit card debt very risky. If your terms change for the worse, it could upset your whole financial apple cart. For this reason, any kind of credit card debt that you wouldn’t be able to pay off within a couple of months, if you wanted to, is bad credit card debt.
Good Credit Card Debt
Credit card debt that helps you save money. If you are a savvy consumer and have good credit, it is entirely possible to save money by using credit cards—if you play your cards right. If you’re planning, for example, a home improvement project, making a short-term loan using a low interest or 0% APR purchase or balance transfer offer can be a great way to go.
Credit card debt used to finance large, pre-planned purchases. Credit card debt can be good, when it’s used to finance large purchases that you’d make anyway, and you just use your card to make the purchase earlier (and even get some great rewards too).
In both cases, however, there is one important caveat: You must have a plan in place to pay the debt off within a few months in case your credit card terms turn against you. Yes, your good credit card debt can quickly turn bad. If your terms change for the worse and your payments go up or even double, your whole financial ship could get put at risk.
For this reason, no credit card debt is worth taking on unless you have either back-up savings in place, or have access to other types of credit (and no, that’s not just another credit card). If you don’t have savings, an acceptable back-up could be a home equity line of credit, so you can turn around and pay off the credit card debt without getting stuck with impossibly high interest charges.
Source
Thursday, January 28, 2010
Bad Credit Home Equity
Credit Card Debt consolidation is one of the simplest methods for the elimination of consumer debt. Of course you have the option of paying more than the monthly minimum. Because of the high interest rates and financing costs, many people have a difficult time keeping to the minimum. Shall pay twice the monthly minimum is impossible.
In this case, debt consolidation is the best option. Debt consolidation consists of two options. You can either use a Credit Card debt consolidation loan from a financial institution or consolidate your debt through a free debt management company. These options are ideal for people with good and bad credit.
Debt Consolidation for People with Poor Credit To qualify for this type of loan you have sufficient equity in your home. If this is the case, can be borrowed up to an amount of equity in your home. The funds from the lending institution can be used to pay the balance on credit cards, personal loans, etc. Also, if you have missed payments, the funds can be used to pay creditors and to improve the credit lines.
A private good credit can also go through a consolidation of debt debt management company. To reduce your debt without using your home equity. Most debt management companies work exclusively people with bad credit. You have to negotiate relationships with various creditors and the work of lower interest rates on loans and credit cards. Thus, your monthly payments are smaller. In addition, more money goes toward reducing the balance. With a debt management company, you can expect to be debt free within five to seven years.
Source
In this case, debt consolidation is the best option. Debt consolidation consists of two options. You can either use a Credit Card debt consolidation loan from a financial institution or consolidate your debt through a free debt management company. These options are ideal for people with good and bad credit.
Debt Consolidation for People with Poor Credit To qualify for this type of loan you have sufficient equity in your home. If this is the case, can be borrowed up to an amount of equity in your home. The funds from the lending institution can be used to pay the balance on credit cards, personal loans, etc. Also, if you have missed payments, the funds can be used to pay creditors and to improve the credit lines.
A private good credit can also go through a consolidation of debt debt management company. To reduce your debt without using your home equity. Most debt management companies work exclusively people with bad credit. You have to negotiate relationships with various creditors and the work of lower interest rates on loans and credit cards. Thus, your monthly payments are smaller. In addition, more money goes toward reducing the balance. With a debt management company, you can expect to be debt free within five to seven years.
Source
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